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Commonwealth: Shifting Home Values and Ownership in Charlotte's Dynamic Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Commonwealth, a neighborhood in Charlotte, North Carolina, has undergone significant changes in its housing landscape over the past decade. This area has transitioned from a primarily owner-occupied community to one dominated by renters, while experiencing substantial increases in both home prices and rent.
The shift in homeownership in Commonwealth has been dramatic. In 2013, 62% of residents owned their homes, but by 2022, this figure had plummeted to just 18%. Concurrently, the average home price saw a remarkable increase, rising from $267,738 in 2013 to $594,106 in 2022, a 121.9% increase over nine years. This inverse relationship suggests that rising home prices may have contributed to the decline in homeownership rates.
Federal interest rates have played a role in these homeownership trends. From 2013 to 2016, when interest rates were extremely low (0.11% to 0.40%), homeownership rates remained relatively stable at around 58-62%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates declined sharply from 42% to 29%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership decreased, the percentage of renters in Commonwealth increased from 37% in 2013 to 82% in 2022. This shift coincided with a substantial rise in average rent prices. In 2013, the average rent was $548, which increased to $1,869 by 2022, a 241% increase. The population of Commonwealth also grew significantly during this period, from 452 in 2013 to 1,794 in 2022, potentially contributing to increased demand for rental properties and driving up prices.
Recent data shows that average home prices in Commonwealth continued to rise, reaching $610,634 in 2023 and $636,791 in 2024. This represents a 7.2% increase from 2022 to 2024. Interestingly, federal interest rates also increased significantly during this period, rising from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024. This combination of rising home prices and higher interest rates could potentially further impact homeownership rates in the neighborhood.
Predictive models forecast that average home prices in Commonwealth will continue to rise, potentially reaching around $750,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $2,500 per month within the same timeframe. These projections are based on the consistent upward trends observed in both metrics over the past decade.
In summary, Commonwealth has transformed from a predominantly owner-occupied neighborhood to one dominated by renters. This shift has been accompanied by substantial increases in both average home prices and average rent. The interplay between rising property values, changing interest rates, and population growth has reshaped the neighborhood's housing landscape. As these trends continue, Commonwealth is likely to remain a dynamic and evolving community within Charlotte.
